Best hotel occupancy in five years

Hotels in Auckland had occupancy of about 82 per cent, up 3.4 points on 2013 and well above the national occupancy rate of 75.7 per cent. Photo / Greg Bowker

Auckland hotel occupancy levels are at five-year highs and the head of one chain in Asia Pacific says New Zealand is the best-performing market in the region.

Tourism Industry Association chief executive Chris Roberts said last year was a stellar year for his organisation's 37 members in the city.

Hotels in Auckland had occupancy of about 82 per cent, up 3.4 points on 2013 and well above the national occupancy rate of 75.7 per cent.

This was the city's highest occupancy rate in five years.

The average daily rate (across all star grades) jumped to $147, up $7 on the previous year, generating total revenue of $456 million, up $25 million on 2013.

The strong performance is a result of improvements in the New Zealand economy and an increase in international visitor arrivals. New Zealand welcomed more than 2.8 million visitors in 2014, which was 5.1 per cent more than in 2013, Roberts said.

"These positive trends have continued in 2015 and as a result, we are seeing reinvestment with a number of the region's hotels undergoing refurbishment. And investors are responding to demand with more hotel developments around the country than we have seen for quite some time."

The survey shows that Auckland's TIA hotel members contributed $335 million to the region through wages and salaries, food and beverage purchases, council rates and other expenditure. The hotels also paid $151 million in wages and salaries, and $8.5 million in council rates.

The national average daily rate across all star grades was $144, up $5 on 2013. Total room capacity was up 500, to 17,900, with most of the increase in Christchurch.

Michael Issenberg, Accor Hotels chief executive for Asia Pacific, has responsibility for properties in 17 different countries and said New Zealand was the best performing like for like year on year of any of them.

"New Zealand's 100% Pure continues to position itself as an eco-friendly destination, which is fantastic, and there's a strong airlift which is crucial," he said. "New Zealand's in a good spot because of the type of product."